The lawyer said she took the decision because she could not reassure the public that the inquiry would be conducted independently of government and had been left with no alternative.

A case at the Court of Session in Edinburgh was lodged against the Scottish Government that the motion to remove her from chairing the inquiry “constituted a material breach of contract” and was against her rights under the European Convention on Human Rights.

She was seeking damages of £500,000 but a written judgement by Lord Pentland ruled the action “must be dismissed”.

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In his conclusion, the judge said: “The pursuer has not pled a relevant case of breach of contract or infringement of her Article 8 rights.

In consequence, the action must be dismissed. “I have sustained the defenders’ first plea-in-law and repelled the pursuers’ pleas.

“I have reserved all questions as to expenses.”

A Scottish Government spokesman said: “We welcome this decision, which confirms that ministers acted lawfully in exercising their responsibilities under the Inquiries Act 2005 and other relevant legislation.

“The judge has confirmed that the decision by ministers to undertake an investigation was, in the circumstances, appropriate, proportionate and fair.

“The focus of the Scottish Government remains on supporting the successful operation of the independent public inquiry.”

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